Understanding marketing regulations to build customer trust

In today’s global marketing environment, keeping pace with regulations goes far beyond avoiding penalties. It is a foundation for building customer trust and protecting your brand reputation.

Based on our insights and the course content we offer at Haaga-Helia, this article outlines the key regulatory frameworks within the EU that shape marketing today. Understanding these rules helps marketers maintain transparency and strengthen brand credibility.

The European legal landscape

When marketing in Europe, the legal system operates on three levels that intertwine: EU-wide regulations, directives, and national laws. Regulations, such as the GDPR and the newly adopted AI Act, apply immediately and equally in all EU countries. Directives set out goals for member states, but each state decides how to implement them, which often creates differences in timing and details. National laws must align with EU principles but can go further, which they do, especially in consumer protection. Furthermore, not all European countries are in the EU, which adds to the complexity.

For marketers, this layered system means one important thing: you cannot assume what works in one country will automatically be acceptable in another. Even within the EU, practices that are perfectly legal at home might expose your company to risks across the border.

The most recent example of this challenge originates from autumn 2025 in Finland. Norwegian Gigantti, primarily a retailer of technology and household appliances operating across the Nordic countries, also offers a broad range of additional products through its online store in cooperation with partner companies. In its Finnish online store, Gigantti was found marketing electric dog collars and spiked collars for dog training. These products are prohibited in Finland under the Animal Welfare Act but permitted in Sweden and Estonia, where the partner companies are based. This oversight resulted in considerable negative media attention for Gigantti. (Huuskonen 2025; Raeste 2025.)

Universal principles behind marketing rules

Despite regional differences in different jurisdictions, several core principles underpin marketing regulations worldwide. At its core, marketing must be fair, respectful, and transparent. This means avoiding misleading claims, treating competitors ethically, respecting human rights, and being especially careful when working with vulnerable groups such as children or the elderly. Privacy is another universal cornerstone, both in terms of how personal data is used and how individuals are represented in marketing materials.

An additional consideration is the distinction between business-to-consumers and business-to-business operations. Laws tend to be stricter when dealing with consumers than businesses, which is why extra care is required in campaigns aimed at the general public.

A typical situation is distance sales. In the EU, consumers buying goods or services through distance sales (like online or phone orders) generally have a 14-day hesitation period to withdraw from contract without giving any reason. Sellers must clearly inform buyers about this right in marketing. However, this rule does not apply in B2B sales, in which the binding effect of a contract generally arises the moment an order is placed online, or an offer is accepted by phone. The challenge in marketing is obvious for companies which have both consumer and business customers for the same goods or services.

Key regulations every marketer should be aware of

Several regulatory frameworks have a significant influence on marketing activities in Europe. We highlight here four key regulations that marketers should be aware of:

The Consumer Rights Directive

This directive sets minimum standards for consumer protection across the EU, though individual countries can raise the bar higher. For digital marketers, the rules cover clear information at every step of the sales journey and the right of consumers to withdraw from online contracts. However, it is good to keep in mind that national legislators may have added some higher protection on a national level. Because of this possibility, it is always wise to check national consumer laws for any specific requirements in targeted national campaigns.

The International Chamber of Commerce’s global Advertising and Marketing Communications Code is also a practical tool for applying these principles (International Chamber of Commerce 2024).

General Data Protection Regulation (GDPR)

In effect since 2018, GDPR protects all personal data and puts individuals in control of how it is used. For marketers, it matters because modern campaigns rely heavily on customer data, from mailing lists to targeted advertising. The stakes are high: by early 2025, more than 2,200 companies had faced fines exceeding €5.6 billion for GDPR violations (Baghal-Schmid & Esser 2025).

The E-Privacy Directive (Cookie Law)

This directive focuses on privacy in electronic communications. It requires explicit consent for cookies and for sending direct marketing via email, SMS, or calls. Interestingly, traditional direct mail remains allowed without prior consent; probably because of its high cost which makes it a less attractive option and therefore not much used anymore.

The EU Commission had planned and drafted a new ePrivacy Regulation for years, but finally in February 2025 the Commission withdrew and buried the proposition. Lawmakers and stakeholders concluded that its provisions were outdated and overlapping with GDPR, making it inefficient to proceed without a full redesign. (Datta ei al. 2025.)

AI Act – Europe’s new AI regulation

Effective since mid-2024, the regulation introduces rules based on risk levels. Prohibited uses include manipulative or deceptive AI that harms decision-making, i.e. deepfakes. High-risk use cases, such as profiling individuals through automated data processing, are particularly relevant to marketers. (European Parliament 2024.) While its full impact is still unfolding, this law will reshape how AI-driven marketing can be conducted in the years ahead.

Comparing regulatory approaches

In recent years, EU legislation has been criticized for excessive regulation and for increasing the financial burden on companies. Such concerns have even led to the withdrawal of some legislative drafts. A relevant angle for our topic is the degree of freedom that digital marketing enjoys elsewhere. While a global comparison is not possible in this short text, we will examine the United States as an example.

Unlike the EU, the U.S. does not have a comprehensive federal privacy law comparable to the GDPR. Instead, regulation is sector-specific and fragmented at the federal level. Separate laws govern areas such as healthcare data, financial data, children’s online data, marketing and privacy oversight, email marketing, as well as SMS and telemarketing. (Epic.org.)

As is typical in the U.S. regulatory landscape, federal laws form only a baseline. Many states have enacted their own broad privacy laws granting rights such as data access and the ability to opt out of data sales. For instance, California offers extensive privacy protections, and the California Privacy Rights Act (CPRA), in force since 2023, introduced new requirements, consumer rights, and enforcement mechanisms for businesses nationwide. The CPRA also regulates cookie practices and requires clear notice as well as opt-out/opt-in options. (Data Privacy Institute.)

EU legislation may be demanding but as the U.S. example shows, marketers face increasing and varying legal requirements also globally. On the other hand, seeing data privacy only as an obstacle may be somewhat old-fashioned: any responsible company should want to respect their customers’ personal data.

Staying ahead of change

For marketing professionals, keeping up with the rapidly changing legal landscape can be challenging. The most effective approach is to join relevant marketing associations or trade unions that monitor legislation affecting marketers. These organisations typically employ legal experts who track relevant legislation and deliver timely updates to their members. This is a much more efficient approach than trying to interpret complex EU regulations independently.

While navigating marketing regulations can seem daunting, understanding the core principles and key legislation provides a solid foundation for compliance. By respecting consumer rights, protecting personal data, maintaining transparency, and staying informed about regulatory developments, marketers can build trust with their customers while avoiding potentially costly legal pitfalls.

Marketers do not need to become legal experts: they should know enough to recognise when expert guidance is necessary and implement systems that support compliance with the ever-evolving legal landscape.

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